Why I’m All In On 5G Now

02.11.20

Have you ever looked back and thought, “That was the one moment that changed it all”? Well, it’s not always obvious at the time. In 1440, Johannes Gutenberg just wanted to print some Bibles. But his printing press ultimately brought the Renaissance, the Enlightenment, and modern science to Europe – and the masses.

In the 21st century, I think we’ll find that our own technological revolution all began right here…with the adoption of 5G wireless.

Here’s what that looks like in the short term: With 5G, we’ll have cable modem speeds on any device. No need to plug in – we’ll have ultrafast internet wherever there’s a cell tower. That’s a big deal for rural areas where broadband access STILL hasn’t come. Those areas are also key to President Trump’s reelection. So, by pushing 5G over the goal line, Trump will deliver a big win for his base – and strike a blow against Chinese rivals like Huawei Technologies.

But, in the big picture, 5G is about much more than trade wars and faster downloads. Because 5G is 100 times faster than 4G, it’ll allow your internet devices to work in real time. That advancement is a game changer for tech companies.

One exciting application of 5G will actually be in the world of sports.

Since we just had the Super Bowl, let’s use that as an example. Every year, it’s a big spectacle…but it’s not always a great game. This year’s big upset by the Kansas City Chiefs, however, was certainly one to remember.

Now imagine the game-winning play – where Chiefs running back Damien Williams ran a 38-yard touchdown in the final three minutes – and you’re watching it as if you yourself were on the field. Or even from Damien Williams’ own perspective, as he dodges the 49ers defense to clinch the victory.

In Korea, at the 2018 Winter Olympics, attendees got an early glimpse of this technology:

Source: IEEE Spectrum

The “trial run” of 5G wireless helped with logistics at the 2018 Olympics, too…from bus navigation to keeping wild boars off the field!

Besides watching the big game, 5G also opens the door to more and better statistics – and, thus, the coming boom in sports betting. From fantasy leagues to online wagering apps, this could one day be a $150 billion market, as estimated in a recent Barrons cover story.

Media companies like ViacomCBS (VIAC) and Fox Corp (FOXA) are investing in the trend; in fact, so is Fox’s Hollywood “cousin,” 21st Century Fox, now owned by Walt Disney (DIS). For movie studios – as well as video-game companies – 5G opens the door to virtual reality (VR).

With VR headsets powered by 5G, you can “explore” a movie set, a multi-player video game or a theme park, without leaving your basement, in a much more realistic way.

These huge improvements in VR will also improve our healthcare. Soon, your doctor may get what they need from a virtual check-up. At Columbia University, they’re even working on virtual physical therapy. Just strap on your VR headset, move a controller, and thanks to the low latency of 5G, your physical therapist can observe your progress as if they’re right there with you!

With a built-in heart monitor, you can now take your own electrocardiogram (ECG/EKG); the Apple Watch will automatically notify you if there’s anything unusual. You can place an emergency call in 150 countries. You can even track your sleep cycles and reproductive health, if you’d like, as well as your workouts.

Just imagine what these devices can do, once they’re communicating on ultrafast 5G networks. It’s great news not just for Apple’s business with the App Store – but for all of us who stand to benefit from these applications. Tim Cook gave us a little preview in September, at the annual Apple Livestream:

Source: Apple

As for the almighty iPhone, Apple is said to be moving into 5G with this year’s iPhone 12. We’ll take a look at what’s coming next for 5G mobile on Thursday.

In the meantime, I’d argue that the right play now is to invest in 5G infrastructure.

Within two years, most cell phones will be 5G enabled and be able to wirelessly handle television streaming. In fact, with the 5G infrastructure market set to grow at an annual rate of 67% over the next 10 years, the entire market will go from $780 million to nearly $48 billion. This buildout is where I see opportunity now.

Cable companies can do their best to fight back with fiber optics…but they can’t compete with the convenience of a smartphone, once it’s got ultrafast 5G. That’s how my 5G infrastructure playwill capture more market share from the broadband cable companies.

The stock I’m targeting is enjoying an influx of big money on Wall Street, and it has strong fundamentals, too – making it an A-rated “Strong Buy” in my Portfolio Grader system.

Navellier Growth
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